Companies are rethinking where they operate and how they design their workplaces to stay competitive in today’s race for talent. To understand how this is playing out globally, Savills Research surveyed CoreNet Global members in June 2025. The findings highlight five key trends driving talent-related and location decisions.
1. Declining talent availability is shaping location strategies
Shifting global labour dynamics are forcing organisations to rethink where and how they access talent, driven largely by a noticeable decline in talent availability across key markets. Some 63% of respondents report decreased talent availability in their headquarter location in the past three years. This trend is particularly pronounced in the technology sector, where 73% report a reduction in availability, reflecting ongoing demand for highly skilled employees in the digital era.
Source: Savills Research and CoreNet Global survey
Organisations are adapting global expansion strategies accordingly: 28% are monitoring trends and exploring options, while 16% have already expanded into new markets to access the staff they need.
This diversification comes amid tightness in global labour markets. Unemployment rates are at almost historic lows. According to the IMF, they average 4.7% in advanced economies, though youth unemployment remains stubbornly high. Structural challenges are compounding the pressure: ageing populations are slowing labour force growth, while weak productivity gains continue to weigh on output, despite rapid technological advances.
Global unemployment rates are at historic lows
Source: Savills Research using IMF
2. Talent availability and cost rank among top location factors
Tight labour supply means companies are weighing a broader set of factors when choosing new locations. The availability of skilled talent remains the top priority, closely followed by cost, which is already driving many organisations to explore more affordable markets, particularly those in South and Southeast Asia, parts of Eastern Europe and Latin America.
Language proficiency ranks as the third most important locational factor. English remains dominant in global business, making markets with high proficiency in the language particularly attractive. A shared language means different teams can communicate easily, improving operational efficiency. It can also be beneficial when dealing with clients.
Regional priorities vary, however. In the US and Western Europe, the focus is on skilled talent and labour costs. In contrast, infrastructure tops the list in India, where efficient movement of people and goods, along with strong digital connectivity, is especially critical in a rapidly developing economy.
Talent access: locational factors
How important are the following factors when selecting new locations to access talent?
Source: Savills Research and CoreNet Global survey
3. Businesses are expanding into new markets to access fresh talent pools
The pandemic reset attitudes to remote work and opened up access to global talent pools, freeing both workers and companies from geographical constraints. Some 16% of those surveyed are expanding into new markets to access fresh sources of talent, especially those that offer the specific skills organisations are looking for, more affordably.
This has led to more diverse expansion strategies, with notable growth in Eastern Europe, Latin America, South and Southeast Asia and Africa. In many cases, these locations benefit from fast-growing, youthful populations and increasing educational attainment in STEM subjects. In Asia, Delhi, Jakarta, Manila and Ho Chi Minh City are emerging as strategic talent hubs, as the Savills Future Workforces Index shows.
Global Capability Centres (GCCs) are another strategy for tapping into new talent. These are specialised hubs, often located in lower-cost jurisdictions, where companies centralise functions such as IT, finance, R&D and customer support to improve efficiency. GCCs are no longer just back offices: in recent years, they have evolved to support more core and executive functions.
Meanwhile, the global mobility of talent has intensified competition between locations. Government visa policies that can help access to talent are becoming a competitive differentiator. While many countries are clamping down on immigration, jurisdictions with agile visa policies are particularly attractive and make it easier for skilled workers to relocate.
This is especially important as 35% of survey respondents report talent shortages are leading them to prioritise talent in existing markets rather than new ones. That may be through upskilling or local recruitment. In such cases, any policy that helps deepen or diversify already constrained talent pools becomes a strategic advantage.
4. Skills-based hiring is replacing traditional degree requirements
In a world where industries are evolving rapidly, hiring is shifting from degree requirements to specific skill needs. As industries advance and become more interwoven with technologies such as AI, skills-based hiring ensures companies are acquiring workers with the latest job-relevant capabilities and opens up a broader, more diverse talent pool. Skills-based hiring also promotes a more inclusive workforce by valuing experience and ability over pedigree. In contrast, degree requirements can be a barrier for underrepresented groups.
5. The evolving talent landscape is reshaping real estate demand
As competition for talent intensifies, real estate is playing a more strategic role in where companies choose to grow. Some 68% of organisations consider the availability and cost of high-quality commercial real estate to be an important or very important factor in location decisions, while 53% cite access to plentiful housing. This underlines how both workplace and living conditions influence talent attraction and retention.
Housing affordability is emerging as a key factor in locational strategy. For younger employees and early-career professionals, the cost and availability of housing can be a significant barrier. Employers are acutely aware of this, and many are factoring residential markets into their expansion strategies, placing greater importance on locations where employees can live affordably and commute easily.
Occupiers are also willing to pay a premium for prime offices that support collaboration, enhance wellbeing, reinforce brand identity and meet sustainability standards. There is greater emphasis on connectivity, with proximity to transport hubs shown to drive rental premiums, as well as amenities and design that support employee wellbeing and productivity.
Source: Savills Research and CoreNet Global survey
These trends underscore the need for organisations to adopt talent-focused location strategies. By anticipating shifts in workforce dynamics and aligning real estate decisions accordingly, companies can strengthen their competitive edge in an increasingly global race for talent.
